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Interest On Capital Questions

Practice 10 Interest On Capital questions with detailed answers and explanations. Free MCQs, PYQs, and mock test questions for NEET, JEE, GATE, SSC and more.

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10
Total Questions
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1
Easy
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7
Medium
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2
Hard
Practice by Exam:Accountancy(7)CUET Accountancy(3)

About Interest on Capital — practice questions, PYQs & concepts

Interest on Capital is a frequently-tested topic on Accountancy, CUET Accountancy. ExamTest.live currently lists 10 Interest on Capital questions spanning previous-year papers from 2026 to 2026, each with worked solutions and a step-by-step explanation. Use the filters on this page to focus on a specific exam, difficulty level or year — every answer key is free, no sign-up required.

Interest on Capital weight in competitive exams

Across our Interest on Capital question bank, the largest sources are Accountancy (7) and CUET Accountancy (3). Click any exam chip above to drill down to that exam-specific question set.

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All Interest On Capital Questions(1–10 of 10)

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Q1hardmcqCUET AccountancyCUET Accountancy 16 July Shift 22026
Vivek, Virat, and Vineet were partners in a firm. Their capital accounts as on April 1, 2019, showed balances of ₹4,00,000, ₹6,00,000, and ₹8,00,000 respectively. On 1st July 2019, Virat introduced additional capital of ₹1,00,000, while Vineet withdrew ₹50,000 from his capital on 31st October 2019. Interest on capital is allowed @ 8% p.a. Calculate the interest on capital to be given to each partner at the end of the financial year (31st March 2020).
Q2mediummcqAccountancyCUET Accountancy 2025 14 May Shift 22026
Saloni and Srishti are partners. Their capital accounts as on April 01, 2019, showed balances of and respectively. On July 01, 2019, Saloni introduced additional capital of . On October 01, 2019, Saloni withdrew from her capital. Interest is allowed @ p.a. Calculate the interest payable on capital to Saloni during the financial year 2019–2020.
Q3mediummcqCUET AccountancyCUET Accountancy 2025 16 May Shift 12026
and are partners sharing profits in the ratio . The capitals introduced by and are ₹ and ₹ respectively. Interest on capital is allowed to partners The net profit of the firm for the year ending March 31st, 2025 is ₹ . Calculate the amount of Interest on Capital to be allowed to each partner.
Q4mediummcqAccountancyCUET Accountancy 2025 22 May Shift 12026
Ram and Laxman started business on 1st Jan 2020 with a capital of and respectively. Ram introduced to the firm on 1st July 2020 as additional capital. If the rate of interest is , assuming that accounts are closed as per calendar year, then the Interest payable to Ram on Capital would be:
Q5mediummcqAccountancyCUET Accountancy2026
Sameer and Yasmin are partners with capitals of and respectively, sharing profits in the ratio of . The financial year closes on March 31 every year. They admit Ravi on October 1, 2019. On that same date, Sameer introduces additional capital of . If interest on capital is provided at , calculate the amount of interest on Sameer's capital for the financial year 2019–20.
Q6mediummcqAccountancyCUET Accountancy2026
Sameer and Yasmin are partners with capitals of and respectively, sharing profits in the ratio of . They admit Ravi on October 1, 2019. Ravi brings as capital, and Sameer introduces an additional capital of on that same date. Interest on partner's capital is provided @ p.a. The amount of interest on the capital of Sameer for the financial year 2019-20 is:
Q7easymcqAccountancyCUET Accountancy2026
The correct journal entry for transferring interest on capital to the Profit and Loss Appropriation Account is:
Q8hardmcqAccountancyCUET Accountancy 2025 27 May Shift 22026
J and K are partners sharing profits and losses in the ratio of . Their capitals at the end of the financial year 2024-2025 were Rs. and Rs. respectively. During the year 2024-2025, J’s drawings were Rs. and the drawings of K were Rs. , which had been duly debited to partner’s capital accounts. Profit before charging interest on capital for the year was Rs. . The same had also been credited in their profit sharing ratio. K had brought additional capital of Rs. on October 1, 2024. Calculate interest on capital @ p.a. for the year 2024-2025 for J.
Q9mediummcqAccountancyCUET Accountancy 2025 30 May Shift 22026
Anupam and Abhishek are partners. Their capital accounts showed balances of Rs. 1,50,000 and Rs. 2,00,000 respectively on April 01, 2019. Show the interest on capital for the year ending March 31, 2020 allowed, if the partnership deed provides for interest on capital @ 8% p.a. and the firm earned a profit of Rs. 14,000 during the year:
Q10mediummcqCUET AccountancyCUET 2025 31 May Shift 12026
Saloni and Srishti are partners in a firm. Their capital accounts as on April 01, 2019 showed a balance of and respectively. On July 01, 2019 Saloni introduced additional capital of and Srishti, . On October 01, 2019 Saloni withdrew , and on January 01, 2020 Srishti withdrew from their capitals. Interest is allowed @ p.a. Calculate interest payable on capital to Saloni during the financial year 2019–2020.

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We have 10 Interest On Capital questions spread across 1 pages, covering easy, medium, and hard difficulty levels with detailed explanations.
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Interest On Capital questions are commonly asked in Accountancy, CUET Accountancy. You can filter by exam using the links above.
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Start with easy questions to build confidence, then tackle medium and hard ones. Use the filter buttons to sort by difficulty. Reveal the answer only after attempting each question, and read the explanation thoroughly.